SPDR S&P 500 (SPY)

[deadjim]

That don’t make sense to my brain. A rising dollar is deflationary, as the currency becomes stronger the price of assets become cheaper. So why are we seeing inflation with a higher dollar? Because inflation is higher on reasons other than dollar printing, and those in the USD tend to be smart money. I believe what we’re seeing is the tail end of a decade+ cycle of low interest rates, and the result is a 1920-21 or 1980 type of deflation. What often happens in these cycles is people find ways to remove their cash as they hedge inflation, ie buying homes, gold.. illiquid assets, long term bonds, etc. once the flip happens, there won’t be cash on the sidelines to take advantage of the cheap prices. This will be an opportunity akin to 2008, 1980, etc.